As previously announced on 22 February 2023, Carnarvon Energy Limited (Carnarvon) entered into a binding agreement to divest a 10% interest in its Bedout assets to OPIC Australia Pty Limited, a wholly owned subsidiary of CPC Corporation, Taiwan (CPC), Taiwan's national oil and gas company.

Under the agreement, Carnarvon will receive total cash consideration of US$146MM. This comprises of an upfront payment of US$56MM (equivalent to A$80 million) on completion of the transaction, and a further carry of US$90MM (equivalent to A$129 million) towards Carnarvon's share of the Dorado development costs once a Final Investment Decision (FID) is taken.

The transaction is subject to a number of customary conditions in respect of Joint Venture approval, approval by the Foreign Investment Review Board (FIRB) and approval and registration by the National Offshore Petroleum Titles Administrator (NOPTA). Carnarvon is pleased to advise that the majority of these conditions have now been satisfied, with the parties working diligently to achieve satisfaction of the final condition in a timely fashion. The parties are continuing to target completion of the transaction mid-year, subject to achievement of the final condition.

Carnarvon Managing Director and CEO, Adrian Cook, commented: 'I am extremely pleased with how the CPC transaction is progressing. Completion of this transaction is an important step in funding our share of the Dorado development. Following completion, Carnarvon will hold substantial cash and financial liquidity, enabling it to de-risk project funding in conjunction with prospective debt financing, which has received a strong level of market interest so far

Our team has been working closely with CPC since the start of this transaction and, along with the Operator, we are all aligned on progressing the Dorado development to FID as soon as possible. With the Offshore Project Proposal having also recently been accepted, the Joint Venture has all the primary regulatory approvals required to support development of Dorado, unlocking the significant value of this asset and the Bedout Sub-basin more broadly.' Azure Capital acted as Carnarvon's adviser on the transaction, as well as advising on its ongoing debt financing process for the Dorado development

Contact:

Tel: +61 (0)8 9321 2665

This announcement contains certain 'forward-looking statements', which can generally be identified by the use of words such as 'will', 'may', 'could', 'likely', 'ongoing', 'anticipate', 'estimate', 'expect', 'project', 'intend', 'plan', 'believe', 'target', 'forecast', 'goal', 'objective', 'aim', 'seek' and other words and terms of similar meaning. Carnarvon cannot guarantee that any forward-looking statement will be realised. Achievement of anticipated results is subject to risks, uncertainties and inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements, and you are cautioned not to put undue reliance on any forward-looking statement

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